华英农业(002321) - 2020 Q4 - 年度财报

Financial Performance - The company's operating revenue for 2020 was ¥3,125,556,245.34, a decrease of 43.35% compared to ¥5,517,686,134.68 in 2019[20]. - The net profit attributable to shareholders was -¥949,413,100.07 in 2020, representing a significant increase of 1,715.19% from -¥52,303,841.24 in 2019[20]. - The net cash flow from operating activities was -¥278,244,258.45, a decline of 142.27% compared to ¥658,262,072.09 in 2019[20]. - The total assets at the end of 2020 were ¥7,174,491,692.53, down 14.02% from ¥8,344,713,588.75 at the end of 2019[20]. - The net assets attributable to shareholders decreased by 37.85% to ¥1,561,027,135.23 at the end of 2020 from ¥2,511,729,289.41 at the end of 2019[20]. - The basic and diluted earnings per share were both -¥1.7770 in 2020, a decrease of 1,715.12% from -¥0.0979 in 2019[20]. - The weighted average return on equity was -46.62% in 2020, a decline of 44.57% from -2.05% in 2019[20]. - The company reported a total of ¥59,515,683.51 in government subsidies related to business operations in 2020, compared to ¥24,115,690.86 in 2019[28]. - The company experienced a significant increase in non-recurring losses, totaling -¥70,722,861.41 in 2020, compared to a gain of ¥27,542,792.61 in 2019[28]. - The company reported a significant decline in duckling revenue, down 86.70% from the previous year, totaling CNY 78,350,442.56[72]. - The export revenue decreased by 57.34%, amounting to CNY 423,435,906.63, compared to CNY 992,675,587.56 in 2019[72]. - The company's domestic revenue for 2020 was approximately CNY 2.70 billion, a decrease of 14.92% compared to 2019, while export revenue was CNY 423.44 million, down 6.36% year-on-year[75]. Operational Challenges - The company faced significant challenges in 2020 due to the COVID-19 pandemic, resulting in a substantial decline in production capacity and profitability[65]. - The production volume of ducklings was 8,502.43 million, achieving only 49.94% of the planned target of 17,025 million[66]. - The slaughter volume of adult ducks reached 6,038.27 million, which is 77.12% of the planned target of 7,830 million[66]. - The production of frozen duck was 144,651.32 tons, completing 79.14% of the planned target of 182,778 tons[66]. - The production of feed was 178,196.00 tons, achieving only 51.01% of the planned target of 349,305 tons[66]. - The company is focusing on enhancing operational efficiency and cost control to mitigate the adverse effects of the pandemic[68]. - The company is focusing on the recovery of production and operations amid the pandemic, with ongoing assessments of inventory levels[118]. Corporate Governance and Financial Management - The company plans not to distribute cash dividends or issue bonus shares for the year[7]. - The company has not indicated any changes in its main business since its listing, suggesting stability in operations[18]. - The company has established a complete industrial chain integrating breeding, hatching, processing, and sales of poultry products, enhancing its competitive advantage[57]. - The company is working to attract strategic investors to improve governance and financial conditions, but faces risks if alignment on objectives is not achieved[116]. - The company has committed to a cash dividend policy, stating that in the absence of major investment plans or significant cash expenditures, it would prioritize cash dividends, aiming for a cumulative distribution of no less than 50% of the average distributable profit over the three years from 2018 to 2020[129][130]. - The company has not made any capital reserve transfers to increase share capital during the reporting period[123][126]. - The company’s actual controller and shareholders fulfilled their commitments during the reporting period, ensuring no competition with the company’s business[127][128]. - The company’s board of directors will consider industry characteristics, development stages, and operational factors when proposing differentiated cash dividend policies[130][131]. Risk Management - The company reported a significant risk of fluctuations in duck meat prices and raw material costs, which could impact financial performance[5]. - The company has faced risks related to disease outbreaks, drug residues, and food safety, which could affect operations[5]. - The company is addressing raw material price volatility risks by maintaining adequate inventory and strategically purchasing during low price periods[113]. - The company has implemented strict biosecurity measures to mitigate risks from avian diseases, including a comprehensive vaccination program for all poultry[114]. - The company has developed a drug residue control management manual to ensure compliance with regulations and prevent the use of banned substances in poultry farming[115]. Subsidiaries and Market Presence - The company has a total of 12 subsidiaries, indicating a diversified operational structure within the agricultural sector[12]. - The company has built a comprehensive sales network covering various regions, including East China, Central China, South China, and international markets such as Japan and South Korea[61]. - The company has obtained export qualifications for poultry products to multiple countries, including Japan, South Korea, and the EU, enhancing its market reach[62]. - The company signed a strategic cooperation framework agreement with a subsidiary of New Hope Group to introduce strategic investors[67]. - The company is focused on expanding its market presence through its various subsidiaries in the poultry and food processing sectors[107]. Social Responsibility and Environmental Initiatives - The company continues to adhere to the "ESG green enterprise citizen" philosophy, focusing on sustainable development and social responsibility[185]. - The company has committed to a poverty alleviation strategy that includes skills training and job placement for impoverished households[194]. - The company has actively responded to national poverty alleviation initiatives, forming partnerships with impoverished households to address their challenges[185]. - The company created over 120 job opportunities for local impoverished households, with monthly incomes ranging from CNY 2,600 to CNY 4,000 (approximately USD 400 to USD 615)[185]. - The company invested over CNY 30 million (approximately USD 4.6 million) in the establishment and upgrading of 12 ecological breeding farms, achieving zero emissions and contributing to rural revitalization[186]. - The company has established a comprehensive environmental protection management system, ensuring compliance with pollution discharge standards[198]. Internal Controls and Audit Findings - The financial report for 2020 received an audit report with no opinion expressed by the auditing firm, indicating potential concerns regarding financial controls[5]. - The internal control audit report indicated significant deficiencies in internal controls related to cash, inventory, and receivables, leading to a limitation in the audit scope[137]. - The company plans to enhance financial reporting processes and internal control execution to ensure accurate financial statement presentation[138]. - The board of directors has developed a specific rectification plan to address the issues raised in the internal control audit report[139]. - The supervisory board will actively monitor the implementation of corrective measures to eliminate deficiencies in internal controls[139]. Legal and Compliance Issues - The company faced litigation involving a financing lease dispute with China National Machinery Import & Export Corporation, with a claim amount of CNY 5,147.19 million, which has been resolved[153]. - Another litigation with China COSCO Shipping Leasing Co., Ltd. involved a claim of CNY 3,633.17 million, which has also been resolved[153]. - The company is involved in a financing lease dispute with Hebei Jinhui Science and Trade Co., Ltd., with a claim amount of CNY 11,127.52 million, which has been resolved[154]. - The company has settled a financing lease dispute with Hebei Jinhui Science and Trade Co., Ltd. for CNY 10,911.35 million, which has been executed and completed[154]. - The company reported a total of 4,847.41 million in a legal dispute with Jiangxi Jinzi Supply Chain Financial Services Co., Ltd., which has been resolved[155].